Newspaper Page Text
continue in the coupon-clipping business.
That ia the simple, naked truth.
The interest was at flret payable in
gold semi-annually, and now, under the
funding scheme, payable quarterly
which enables the gentlemen having
tiied incomes derived from bonds to com
pound their interest. Thus 4 per cent
payable quarterly, is quit as good as
per cent, paid as provided In the 6 per
cent bond, and, la fact, greater when we
compare the purchasing power of money
now with its purchasing power say, ten
years ago. It is true beyond dispute that
he Is receiving a greater Interest to-day
than when he purchased his 6 per cents
from the government
Mr. Claflln Will the gentleman allow
me to ask him a question.
Mr. Weaver I yield to the gentleman
Mr. Claflin I would ask him if that
change from semi-annual to quarterly
payments was not in the Interest of the
Mr. Weaver It was certainly in the
interest of the bondholders.
Mr. Claflln Was it not in the Interest
of the government? Thegovernment re
ceives its money from week to week and
from week to week pays it out, and it
would otherwise have to lie in the treas
Mr. Weaver It would not be a great
detriment to the government to let
little gold lie in the treasury. Does the
gentleman undertake to'say before the
house and the country that that was the
design congress had in view when they
made the interest payable quarterly? Not
at all. It enabled the bondholders to re
ceive that interest four times a year, and
to compound it by loaning it to the peo
ple. The effect on the government in
point of convenience Is a mere bagatelle;
it amounts to nothing. The same vouch
ers have to be kept, the same vaults are
there, and more clerks have to be em
Mr. Pound It saves Interest to the
Mr. Weaver How does it save Inter
est? I will yield to the gentleman to
point out how it saves a single cent of in
terest to the government. Explain now;
I will give you all the time you want,
Mr. Pound The gentleman is making
his own speech, I will not Interrupt him.
Mr. Claflln We know that we receive
the income weekly and monthly, and
when the government has received three
months' money into the treasury, then it
Is cheaper to pay It out than keep It for
Mr. Weaver Does that save any in
Mr. Haskell I will answer the ques
Mr. Weaver I will yield to the gentle
man. Mr. Haskell The market quotations
of all stocks and all bonds for one hun
dred years will show that a bond with its
Interest payable semi-annually is worth
more In the market and can be sold at
par and at a less rate per cent Interest
than one In which the Interest Is payable
only annually, and If payable quarterly
you can sell the bonds still more and at a
less rate of interest
Mr. Weaver The gentleman's argu
ment destroys itself. Why do bonds sell
for a higher rate In the market when the
interest Is payable quarterly? For the
reason that when the interest is payable
quarterly the bondholders can compound
it by new loans, thus making it a better
investment. It is a pecuniary reason that
controls them, and not charity forthe
people. I thought verily that it was a
most remarkable thing that these people
holding .'government securities drawing
6 per cent would voluntarily come for-1
ward and exchange them for 4 per cent
bonds, and I believed the story so preva
lent on the Republican stump that it was
the love of the bondholders for the dear
people that made them willing to sur
render the bonds; but when I began an
Investigation of the matter and saw that
the . bondholder received ,'in this way
more interest than he received before,
then I saw the cloven foot of the con
spiracy sticking out, and no gentleman In
the house and no gentleman on the
stump has been able to cover it up. Ap
Not only did they Intend to put the
bonded debt into a condition in which it
can never be paid, but it was with an ul
terior design, and I call the attention of
the Republican members who may fol
low me to the fact, that it was the ul
terior design, after having placed the
bonded debt of the country in a condi
tion in which it could not be paid, to
make the present national banking sys
tern of the country, based upon the
bonded debt, the great moneyed mo
nopoly for all time to come. I proceed
to prove it
The comptroller of the currency, in
his report for 1876. uses this language:
It was shown in the report, form the dis-
oussion in congress at the time of the pass
age of the legal-tender aot, from the re
ports of different secretaries of the treas
ury, and from the uniform legislation sinoe
that time, that the national banking Bystem
was intended to be permanent, the inetitu
tions organized under it being by the ex
press terms of the law authorized to con
tinue for a term of twenty years; while it
was equally evident that the treasury notes
issued and still in oiroulation were intended
to be funded.
Now, if the national banking system
was intended to be permanent, then of
necessity the bond system must be per
manent also, for the former rests upon
the latter. If you pay off your bonds,
what becomes of your national banks?
You cannot have a national bank without
bonds. If the banks are to be perma
nent, the foundation must be permanent
also. Hence you have engrafted upon
this government, as another step In the
great, conspiracy, the system of perma
nent national banks and permanent na
tional debt, the banks resting upon the
debt; and from the law of self preeerva
tlon, If for no other reason, these corpo
rations will forever exert all their power
ful and consolidated Influence to keep
alive the system. To enable them to ef
fectually do this the tlaws of congress
have placed in their hands absolute con
trol over the volume of our currency.
Mr. Sapp Will my colleague yield to
me for a question?
Mr. Weaver With pleasure.
Mr. Sapp Is not the existence of
every national bank In this country
limited by law?
Mr. Weaver When the bank act was
passed it provided that national banks
should be chartered for twenty years,
and the circulation was limited to $334,-
000,000. But your resumption act of
1875, provides that there shall be in this
country free national banking and un
limited national bank Issues.
Mr. Sapp But does the gentleman
pretend to say that the free national
bank law allows the national banks to
exist without limitation as to time?
Mr. Weaver No, they are still char-
ered for twenty years.
Mr. Sapp And then will not the na
tional banks expire In twenty years from
the time that they are chartered?
Mr. Weaver It does not limit the
time during which national bank char
ters may be Issued. As long as that law
on the statute book there Is a per
petual right In this country for the char
tering of national banks. Can the gen
tleman understand that? As the law
now stands they are about as perpetual
as the human family. The Almighty
says that the days of a man's years ehall
be three score and ten. Was It the in
tention that at the death of my friend
the human family should cease? Great
laughter. Not at all. One national
bank will be chartered to-day and will
die next year, or la due time, and then
another will spring up. As it Is written
"Abraham begat Isaac, Isaac begat Ja
cob, and Jacob begat twevle sons."
Mr. Townsend, of Illinois And the
new national bank will have the same
stockholders as the deceased bank.
Mr. Weaver If the gentleman says
that there is a limitation to the national
banking system, then he must hold that
the Bystem la noL designed to be perma
nent, but to be temporary. Why not,
then, wipe it out now?
Mr. Sapp I say that it would be con
trary to the Interest of the people to
wipe it out now.
Mr. Weaver Then you want It to be
Mr. Sapp I am answering your ques
Mr. Weaver Do you want it to be
Mr. Sapp I will answer that question
Mr. Weaver Answer it now.
Mr. Weaver Answer my question, yes
Mr. Sapp I want our national bank
issues to continue as long as they will be
of public utility.
Mr. Weaver That does not mean any
Mr. Sapp Yes It does.
Mr. Weaver I would like to know
why it is of public utility cow more than
It will be twenty years from now.
Mr. Wilber I would like to ask the
gentleman why he would discontinue the
national banks? .
Mr. Weaver I will tell you before I
Mr. Wilber That la what I would like
Mr. Conger Will the gentleman allow
me to ask him a question?
Mr. Weaver I yield to the gentleman
from Michigan, of course.
Mr. Conger I wish to ask the gentle
man what necessity there is for bonds to
the very existence of a national bank? 1
understand the gentleman to say that na
tional banks could not exist unless bonds
were also in existence. Now, I want to
know if a national bank needs bonds at
all for its existence?
Mr. Weaver It does.
Mr. Conger How?
Mr. Weaver The law requires bonds
to re deposited before starting a na
Mr. Conger For what?
Mr. Weaver To secure the circulation.
Mr. Conger Ah; but the existence of
bank does not require the existence of
Mr. Weaver A national bank without
circulation is like a human being with
out a aouL There are no national banks
Mr. Conger Does the gentleman say
Mr. Weaver None that I know of.
Does the gentleman know of any?
Mr. Conger Does the gentleman say
there are no national banks without cir
Mr. Weaver 1 will compromise with
the gentleman la this way, and there will
be a bill introduced no doubt during this
session about to that purpose. I will
let the national banks stand If the gen
tleman will take away their circulation.
A Voice: "That is fair."
Mr. Conger The gentleman says that
national banks could not stand without
bonds. Now, I say that a bond Is not
necessary at all to the existence of a na
Mr. Weaver Take away the bonds
and take away the circulation and you
may have all the national banks you
Mr. Wilber Last year the national
banks paid in taxes on an average not
less than 5 per cent, on their capital,
and they received a little over 4 per cent,
upon their bonds. Now, I would ask
the gentleman why he would wipe out
the national banks when they are paying
that amount of taxes for the people.
Mr. Weaver The charges for Interest
and exchange are increased so as to cover
all that, and so the people pay the tax in
the end and not the banks.
Mr. Fisher, (and many others) Will
the gentleman allow me a question.
Mr. Weaver I am willing to yield to
one at a time, but I declare I do not like
to have the whole syndicate at me at
once. You confuse one another, gentle
men. Laughter and applause.
Now, if the national bank system is to
be temporary, why not change It now?
Why not give the country gold, silver
and legal-tender paper, all Issued by the
government and not by or through the
bank corporations? Can any gentleman
give a statesman-like reason for withhold
ing this great boon from an oppressed
Now, I will, at the request of the gen
tleman who asked it, Btate my reason for
opposing national bank money. I op
pose it, first for the same reason that
Jackson opposed money issued by bank
ing corporations. In his farewell address,
on page 995, volume 2, of the Statesman 'a
Manual, he says:
Corporations which create the paper
money cannot be relied upon to keep the
circulating medium uniform in amount.
Thatis one of my reasons for oppo
sing national bank money.
Mr. Fisher WiU the gentleman allow
me one question?
Mr. Weaver I will, as I interrupted
the gentleman once yesterday.
Mr. FJsher I only wish to ask the
gentleman what this has to do with the
bill under discussion?
Mr. Weaver I will tell you, sir. I am
discussing the question as to the Intent
of the demonetization of sliver and the
fastening upon this country of a perma
nent bonded debt with the national bank
ing system on top of It. Applause. You
cannot get me away from that point If
silver Is freely coined, they argued, the
bonds will be paid in coin, and the banks
will fall and our power will be gone.
(Concluded next week.)
The eovernment charsre 2 cents for car.
rylng a letter from New York to' San
Francisco. The telegraph companies
charge $2 for an ordinary dispatch, and
yet the cost of the government In send
ing the letter Is greater than to the tele
graph company in sending the dispatch.
Argument seems unnecessary to con
vince anyone or the advantages of gov
ernment control. The Coming Crisii.
Oppoilt Union Depot, Kanau City, Ho.
The Blossom House la convenient to
all parts of the city. Cable cars run In
every direction. It ia Just across the
street from the union depot, just the
place to meet your friends. Members of
the Alliance make the Blossom House
their headquarters when in the city, and
their general place'of meeting when at-